I hope you’re in the mood to trade the Loonie because I’ve got hot setups on EUR/CAD and CAD/JPY that could make your trading week! Check it!
EUR/CAD looks like it just bounced from the 1.5050 minor psychological level, which isn’t surprising since the level lines up with a 61.8% Fibonacci retracement, previous support area, AND the 200 SMA on the 4-hour chart.
Can the euro sustain its bullish momentum? You can buy at current levels and place your stops below the SMAs if you’re confident that the common currency would retest its previous highs near 1.5200.
If you’re bearish on the euro or bullish on the Loonie, however, then you could also wait until the pair makes new March lows before you think about pulling the trigger on your short trades.
Whichever bias you’re trading today, make sure you’re practicing good risk management habits when you execute your trading plans!
Earlier this week we talked about how CAD/JPY’s bounce from a resistance needed to break below a rising trend line before it could see momentum.
Well, it looks like the bears were up to the task! The pair looks like it’s on its way to the 81.00 MaPs, which has been supporting the pair for almost a year now.
Shorting at current levels and aiming for the 81.00 support is a good play if you think that the Loonie’s downtrend still has steam.
If you’d rather not buy the yen against the Loonie, though, then you could also wait until CAD/JPY finds support and some bullish momentum and aim for a range support play instead.
Good luck and good trading, brothas!